A hard money loan is a short-term loan from a private lender, secured by the property itself rather than the borrower's income or credit, and it carries a higher interest rate and points than a conventional mortgage. Investors use it to move fast on a purchase or fund repairs, then typically refinance into a conventional loan or sell before the short term ends.
Why it matters
Hard money is fast and expensive, which is why it usually shows up in a deal with a tight deadline.